Loan Payoffs

SPECIAL PROCEDURES FOR SALEM FIVE-TO-SALEM FIVE REFINANCES

If your transaction is a Salem Five-to-Salem Five refinance, interest should only be collected through the funding date of the new loan. On that date, we will credit your Salem Five conveyancing account for the new loan proceeds and debit the account to payoff the refinanced loan. DO NOT SEND US A CHECK for the payoff of the refinanced loan, however you must send us recording information in order for us to prepare a discharge.

IMPORTANT INFORMATION REGARDING THIS PAYOFF STATEMENT

Our policies for revisions to this payoff statement
This statement is effective through the payoff date listed, and will not be honored more than 30 days from the request date at the top of the statement. If the payoff will not occur within 30 days of the request date, you must request a revised payoff statement. We do not provide payoff figures or revisions to payoff figures verbally.

Our mailing address, payment cut-off time and policies regarding collection of interest
Interest must be paid through the date payoff funds are received in our office. Payoff funds must be received by 2:00 p.m. Eastern Time, Monday through Friday (excluding holidays) for same-day credit. Payoff checks must be delivered to:

Salem Five
Attn: Payoff Department
210 Essex Street
Salem, MA 01970

Posting of payments will be delayed and additional per diem will be collected if the payoff is delivered to any other address, if the payoff is received after 2:00 p.m. Eastern Time or if the payoff is received on a non-business day. Note: please see the special procedures above for Salem Five-to-Salem Five refinances.

Our policies for handling monies held in escrow

Funds being held in escrow are credited towards the amount required to pay the loan in full. Therefore, a borrower may only expect a refund from us if the amount remitted to pay the loan in full is in excess of the required payoff amount less any escrow balance.

Our policies regarding collecting payments and assessing late fees prior to payoff of the loan

The borrower is expected to make all payments due on this loan up to the date it is paid in full. Late charges will continue to be assessed according to the terms of the loan agreement and the payoff amount must include any late charges assessed between the date of this statement and the date payoff funds are received in our office.

Our procedures for discontinuing automatic payment services

If this loan is set up for automatic payments from a Salem Five checking or savings account, that service will stop as of the date of this payoff statement. If this loan is set up for automatic payments via ACH from another financial institution, the borrower must notify us in writing to stop this service.

Our procedures for payment of escrow items after issuing a payoff statement

Salem Five will not be responsible for the payment of taxes, any type of insurance or other escrow items as of the date of this payoff statement. It is the closing agent's responsibility to notify us if this loan will not be paid off so that this restriction can be removed from the account. We will not be responsible for fees or charges incurred as a result of the closing agent's failure to notify us that this loan is not being paid in full.

Our procedures for handling overpayments or underpayments

If the amount remitted is in excess of the amount necessary to payoff the loan, then we will issue a refund to the borrower. This refund will be sent to the borrower 10 to 14 business days after the payoff date. If the amount remitted is insufficient to pay off the loan, then we will notify the closing agent of the deficiency. We must receive funds to cover the deficiency on the following business day to avoid additional interest charges.

Our procedures regarding properties in Maine

For loans paid off on or after September 1, 2004, Salem Five will be sending discharges of mortgage for Maine properties directly for recording with the appropriate Registry of Deeds. The recording fee will be assessed at payoff and is reflected on the payoff statement. This applies only to properties in Maine.

Our requirements for providing a recordable discharge

It is the closing agent's responsibility to provide us with complete and accurate recording instructions. We will provide the closing agent with a discharge based on the recording instructions provided to us. A fee may be imposed if a discharge needs to be revised due to an error in the recording instructions provided to us.